The UK government has reversed its controversial inheritance tax plan for farmers, raising the threshold from £1 million to £2.5 million. The U-turn comes after months of protests and follows the suicide of farmer John Charlesworth, who took his own life amid fears about the original proposals.
Jonathan Charlesworth, whose 78-year-old father died on October 29 last year, called the policy change a "well-fought-for victory". He told the Press Association: «It is a step in the right direction – more farms will sleep better this Christmas without the threat of inheritance tax looming over them.»
The new threshold means couples can now pass on up to £5 million in qualifying agricultural or business assets tax-free when the changes take effect in April 2026. Assets above that level will face a reduced inheritance tax rate of 20 percent, down from the standard 40 percent.
Tragedy that sparked outcry
John Charlesworth took his own life in a barn on his Silkstone farm the day before Labour's first Budget announcement. His son testified at the Sheffield Coroner's Court inquest that his father had grown «growing more and more anxious about inheritance tax and the implications for the farm».
Jonathan Charlesworth told the court: «In the couple of months before it happened, the only thing he talked about was inheritance tax.» He added: «I think he woke up that morning and thought, 'I'm not risking it, I'm not risking losing everything I've worked for'.»
The coroner's court heard Charlesworth believed he was acting to «save the farm for future generations». His son said: «I think he was under stress looking after my mum but if it hadn't been for worries about inheritance tax he would still be here today.»
Relief for farming community
The policy reversal significantly reduces the number of estates facing higher inheritance tax bills – from approximately 2,000 under the original plans to around 1,100. Environment Secretary Emma Reynolds said the government had «listened closely to farmers across the country».
National Farmers' Union president Tom Bradshaw welcomed the announcement as a «huge relief to many». He told reporters: «I am thankful common sense has prevailed and government has listened.» Bradshaw described the original Finance Bill proposals as «pernicious and cruel tax, trapping the most elderly and vulnerable people and their families in the eye of the storm».
Jonathan Charlesworth acknowledged the change wouldn't undo the damage already done. He told the Press Association: «It's a welcome U-turn that won't bring back the lives lost over the last year or so due to the anxiety caused, but will hopefully prevent a flood of suicides running up to the commencement in April.»
Political fallout continues
The U-turn represents a major climbdown following months of protests, including tractor demonstrations outside Parliament. The original proposals, unveiled in Chancellor Rachel Reeves's first Budget, sparked widespread backlash from the farming community.
Liberal Democrats rural affairs spokesman Tim Farron called the situation «utterly inexcusable». He said: «It is utterly inexcusable that family farmers have been put through over a year of uncertainty and anguish since the Government first announced these changes.» The party demanded the government scrap the tax entirely.
Reform UK deputy leader Richard Tice criticized the change as insufficient, calling it a «cynical climbdown» that does «little to address the year of anxiety that farmers have faced». Conservative shadow environment secretary Victoria Atkins described it as «too little, too late».
'Should have been researched first'
Jonathan Charlesworth said the policy «should have been researched and put out to review before any announcement was made». He noted: «There will, however, be plenty of larger family farms that will have to plan for potential inheritance tax costs and a further window for them to do this would be beneficial.»
Despite his criticism, he struck a hopeful note for the farming community: «But today we can celebrate a well-fought-for victory for our precious countryside and the custodians of it. Pressure from the industry has paid off – this will be the best Christmas present for a lot of farmers.»
The Department for Environment, Food and Rural Affairs stated that ministers had «listened to concerns» from the farming community. Emma Reynolds said: «It's only right that larger estates contribute more, while we back the farms and trading businesses that are the backbone of Britain's rural communities.»
Note: This article was created with Artificial Intelligence (AI).
